Employers Shift Larger Share of Medical Costs Onto Employees

  27 July 2016

As reported by Forbes.com, a new study by Aon Hewitt, a benefits consultancy firm, indicates that in 2013, employers will shift a larger share of medical expenses onto employees in an effort to control rising costs.

As a result, employees face an 8 percent increase in their premiums, in addition to a double-digit percentage hike in out-of-pocket costs. The 2013 annual employee premiums will rise 8 percent to $2,385 from $2,204 this year in what employees will have deducted from their paychecks for health care. That amount is approximately 21 percent of next year’s total-company paid premium of $11,188, which is rising slower (at about 6 percent) than the rate of increase employees will see. Aon Hewitt’s data was derived from a database of more than 460 large employers that spend more than $63 billion annually on health care benefits for nearly 15 million employees and their dependents. The database includes large and midsize employers with more than 1,000 workers and in some cases, tens of thousands of workers. The survey comes at the peak of so-called open enrollment season, which generally runs through mid-November, when companies disclose to employees their benefit options for the following year. Read More.